Please help us continue to provide you with free, quality journalism by turning off your ad blocker on our site.

Thank you for signing in.

If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next!

I agree to receive occasional updates and announcements about Forbes products and services. You may opt out at any time.

I'd like to receive the Forbes Daily Dozen newsletter to get the top 12 headlines every morning.

Forbes takes privacy seriously and is committed to transparency. We will never share your email address with third parties without your permission. By signing in, you are indicating that you accept our Terms of Service and Privacy Statement.

Why QVC's CEO Tells New Executives To Do Nothing But Learn For Six Months

QVC CEO Mike George has an unusual approach to on-boarding new executives.

Credit: QVC

Companies often say they like new hires to hit the ground running. The faster they can make an impact, the better. But at QVC — the home shopping company, which brought in $8.7 billion in revenue last year — CEO Mike George tells new executives something much different.

New senior-level hires can’t make decisions or share ideas before they’ve been at the company for six months. “Make observations every night, fill up tons and tons of notepads,” he tells them. “But don’t share them until later. Catalog them, and go through your own reflection process a few months down the road.”

Why would he take such a strange approach? As a retailer supported by a cable TV network, QVC is in an unusual business. When it hires people coming from consumer goods companies, some of their skills and experiences transfer. “But it’s quite accurate to say there are very few people who do what we do,” George says. So he wants them to learn the firm’s nuances first. For example, in most retail operations, a new product’s first price is its highest, and discounts come later. At QVC, the first price is the lowest — it’s offered for a limited time and can only go up from there. Also, “there are no seasons at QVC,” George says, since they showcase 35 to 40 new items every day, not just at the beginning of each quarter.

The six-month muzzle also gives George time to see if an executive will fit in with QVC’s non-hierarchical, low-ego culture. If it turns out that a new hire isn’t a fit, George can drop the guillotine before he or she damages the company. The CEO first joined QVC in 2005 and implemented this rule a couple of years later, after he had made a bad hire. “I asked, where did I go wrong? I think it was around the theme of high or low-ego leaders, and impressing upon the team the need to learn the organization.”

And it isn’t just about learning the complexities of the business or testing the executive. “At the foundation is the real relationships part of it, and earning that trust and respect,” he says. “There has to be trust that we’re both here to serve the customer, and the only agenda is the customer, the company and each other. Somehow people need to get that belief set with each other.”

Once that’s happened, the executive can spring into action. “Then we can move crazy fast, accomplish big things and become agile,” he says. But could George’s rule curb innovation, because it prevents executives from speaking up while they still have a fresh perspective? “We’ve tried to guard really hard against letting that happen. When I frame on-boarding, I’m deliberately provocative. We really don't want you to lose that perspective you have on day one. So really write [your early ideas] down.”

George also says the leadership team is always questioning why the company operates the way it does, a mindset aimed at preventing it from becoming frozen and unable to evolve. And he sees great value in mixing new ideas with deep experience. “A big part of how I see my own job today is creating this magic that comes from blending the experience of 35-year QVC veterans with new perspectives and new ideas.”

According to George, when senior hires first hear about the rule, they all have the same initial response — a combination of “Are you serious?” and “What a wonderful gift, I’ve never had that.” For the first few weeks, they take it seriously and find it exciting. But then they start itching to have influence and feel uncomfortable not being able to do so. When they can’t restrain themselves and start sharing ideas, George steps in to course-correct. If that doesn’t work, he may have to show them the door.

I cover fintech, cryptocurrencies, blockchain and investing at Forbes. I’ve also written frequently about leadership, corporate diversity and entrepreneurs. Before

…

I cover fintech, cryptocurrencies, blockchain and investing at Forbes. I’ve also written frequently about leadership, corporate diversity and entrepreneurs. Before Forbes, I worked for ten years in marketing consulting, in roles ranging from client consulting to talent management. I’m a graduate of Middlebury College and Columbia Journalism School. Have a tip, question or comment? Email me jkauflin@forbes.com or send tips here: https://www.forbes.com/tips/. Follow me on Twitter @jeffkauflin. Disclosure: I own some bitcoin and ether.